Background on Key Figures and Context
The Mexican peso experienced a decline of 0.47% against the US dollar in Sunday’s electronic trading, according to recent reports. This depreciation is attributed to the heightened risk aversion stemming from ongoing tensions in the Middle East, particularly after the United States announced plans to strike three Iranian nuclear facilities.
Mexican Peso’s Performance
The Mexican currency lost ground against the dollar, depreciating by 0.47% and reaching a level of 19.2586 pesos per US dollar, compared to the previous day’s close set by Banco de México (Banxico) at 19.1683 pesos.
On Friday, the currency had already shown a 0.67% decline, marking its fourth consecutive day of retreat. Over the week, the exchange rate dropped by 1.21%.
Global Market Reactions
The futures of the Intercontinental Exchange’s Dollar Index (DXY), which measures the greenback against a basket of six reference currencies including the euro, indicate an increase of 0.33% to 98.61 points.
President Donald Trump disclosed on Saturday that the United States had successfully attacked three Iranian nuclear sites, a claim confirmed by Iranian authorities.
“We have successfully struck three Iranian nuclear facilities, including Fordo, Natanz, and Isfahan. All aircraft are now out of Iranian airspace,” Trump posted on his social media platform, Truth Social.
This news triggered uncertainty in international markets. Stock market futures fell, oil prices opened lower in Asia, and there was a surge in demand for safe-haven assets like the US dollar and a weakening of emerging market currencies, including the Mexican peso.
Key Questions and Answers
- What caused the Mexican peso to depreciate? The risk aversion stemming from the ongoing Middle East tensions, particularly after the US announced strikes on Iranian nuclear facilities.
- What is the significance of the US attack on Iranian nuclear sites? The attack heightened global market uncertainty, causing stock market futures to fall and oil prices to open lower in Asia. It also increased demand for safe-haven assets like the US dollar and weakened emerging market currencies, including the Mexican peso.
- How has the Mexican peso performed recently? The peso depreciated by 0.47% against the US dollar in Sunday’s trading and has shown a weekly decline of 1.21%. It had previously fallen by 0.67% on Friday, marking its fourth consecutive day of retreat.
